Capital Project Prioritization Process (CPPP)
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- Marilynn Howard
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1 Capital Project Prioritization Process (CPPP) Capital projects are evaluated each fiscal year and integrated into the multi-year financial plan, which is linked to the Strategic Plan. The Utility Board sets the strategic plan by developing the year s strategic goals. These goals are management s basis for the multi-year financial plan. Determine Total Project Funding Amount To determine the Total Project Funding Amount, the Financial Plan, along with the various funding sources, must be reviewed with focus on amounts that may be available from the Revenue Fund, Renewal & Replacement Fund, Designated Retained Earnings, Contribution in Aid of Construction Fund, Line Extension Fees, and other reimbursements. Capital Project Evaluation Form The Capital Project Evaluation Form is prepared for each proposed project. The top portion of the form describes the capital project in detail. This is comprised of a description of the work, Cost-Benefit Analysis, and breakdown of the proposed project costs. The middle part describes the relationship of the project to each strategic goal with a total score included. The evaluator reviews the score for appropriateness and makes changes as needed. The total score of the proposed project for each fiscal year is calculated by adding the numbers in each column. Rank Proposed Projects The Finance Department prepares a list of projects based on number of points in descending order, with the requested funding for each project included. The list indicates whether total funding equals available funding. Proposed projects that fall below the total available are cut from funding in the current year and are reconsidered in subsequent years. The department directors and direct reports meet with the Chief Financial Officer to discuss the results of the CPPP. Any adjustments the group deems necessary are made. The results are forwarded to the General Manager & CEO for review and final approval. 106
2 Project Title Detailed Description of work Impact to KEYS (will project save money, improve customer satisfaction, etc.) Please detail: Possibility of project over runs: YES (Detail reasons) / NO Utility Board of the City of Key West Budget Prioritization Form Circle one from each group Core Business? Yes No Type of Expense? O&M Capital Budgeted Project Total $ - Estimated Labor Cost Estimated Overtime Cost Estimated Material Cost - Inventory Estimated Material Cost - Vendors Estimated Transportation Costs Estimated Outside Services Cost Please enter your score for 2005 tasks only in column "C" Score Core Business / Electricity Necessity Required by Law, Contracts & Agreements Yes/No Operationally Required Yes/No Security Yes/No If the task being evaluated satisfies either of the "Necessity" criteria, STOP at this point, do not score any further Implement a reliability plan to maintain system outage benchmarks that exceed industry levels 1,2, 3 Achieve optimum levels of Customer Service Identify, formulate & implement plans that will improve upon key employee issues Investigate & develop implementation plans for new revenue sources in communication & land use Maximize the benefits derived from the FMPA relationship Total Score - Core Items - Evaluated by: Date: Disposition: 107
3 Multi Year Capital Improvement Plan Project Description FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Transmission Line and Substations Maintenance- FKEC territory $ - $ 192,945 $ 276,000 $ 305,380 $ 446,630 $ 65,000 Adjust Tapchangers & Replace Contacts , Reinsulate Line 4 (water portion) ,000 Repair Line 1 Crossarm Bolts - 25, Repair Over the Water Transmission Pole Foundations 130,000 15, , , Reinsulate Stock Island Plant Substation , Steel Pole Painting - 50,000 50, , Replace Transmission Oil Circuit Breakers - 150, , , , ,000 KWDS motorized Switches - 59, Replace 69Kv US1(9) & Kennedy Drive(9) - 180, , Purchase Potiential Transformers 50,000 35, Upgrade Transmission Relay Panels 115, , , FKEC Communication 30, Total - Transmission 325, ,295 1,026,650 1,430, , ,000 Change out Voltage Regulator , Install new Feeder / Reconductor - Stock Island Substations ,000 50, Construct New Feeders on Distribution System - BPS , ,000 Construct New Substation - Stock Island - 200,000 2,000, Underground Trenching 364, Purchase Transformers 300, , , , , ,544 Other - Daily Work Orders, Engineer's Requests 900,000 1,300,000 1,365,000 1,433,250 1,600,000 1,700,000 Military ( NESC, Upgrades & Normal Maintenance) Distribution Lines 2,433, Improve Distribution(Sectionalizers/Reclosurers/Capacitors) , Distribution Improvements 400,000 3,455,000 2,885,000 2,940,000 3,245,000 3,135,000 Power Quality Meter , Replace Substation Transformers- KDS # ,250, Replace Substation Transformers- KDS # ,250, Replace Substation Transformers- US ,000 Replace US-1 Switchgear ,000 Fiber US1, Big Pine, Big Coppitt Substations - 100, Normal Improvements/upgrades to Substations - 40,000 40,000 40,000 40,000 40,000 Re-work 4160 for future use , Purchase Residential and Commercial Meters 200, , , , , ,000 Remote Metering [study, implementation] ,000 2,000,000 2,000,000 Relocate Poles-DOT Right-of-Way (North Roosevelt Rehabilitation) ,000 - Replace Switchgear-Bus Kennedy Drive Substation 578, Substation Feeder Cable Change Out (12 Feeders) - 275, , Replace Down Guy , ,000 - Stub Pole Removal - 50,000-50,000-50,000 Replace Remote Terminal Unit ,000 15,000 15,000 - Field Communications / Radio Replacement 175, ,000 Total - Distribution 5,350,624 6,475,000 9,286,500 7,193,100 8,037,185 9,301,544 Upgrade Emissions Monitoring Equipment - 120, Purchase & Install MSD Turbo Chargers(5) , Control Upgrade for HSD's - 25, Military ( NESC, Upgrades & Normal Maintenance Generators) 400, Oil Boom ,000 - CEM Upgrade ,000 Overhaul High Speed Diesel at Stock Island , ,000 - Overhaul - CT#1 (FY 09 Hot gas) , Replace or Rebuild Medium Speed Diesel Turbo Chargers ,000 Hydrogen Generator , Overhaul - Medium Speed Diesels - 100,000-60, Replace Turbo Charger - High Speed Diesels 30,000 30,000 35, Purchase Fin Fan Coolers (5) - 950, Repair Exhaust MSD's - 100, MSD Fuel Lines - 50, Total - Generation 430,000 1,375, , , , ,
4 Multi Year Capital Improvement Plan Project Description FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Purchase & Installation of siding for the SIGF 30,000 35,000 35,000 35,000 35,000 35,000 Install Concrete Seawall - 277, Replace MSD Roof - 85, Gas Pump Replacement , Industrial Floor Sweeper (Warehouse) , Roof RGSC , Enclosure of James Street Building (Mail room) , Replacement of Service Building ,000 50,000 50,000 - Renovate Second Service Building , Wellness Center Restroom , Purchase 10,000lb Forklift - 45, Elevator Upgrade Service Building - 35, Purchase & Install Roll Down Hurricane Screen - 25,000 25, Redesign & Construct Warehouse "B" , , New T&D Building , , Convert Louisa St Substation - Pocket Park - 25, Improvements to Facilities 50,000 60,000 64,500 69,338 74,538 80,128 Storm water Runoff at James Street - 75, Demolish Boiler/Apparatus - Stock Island Generating Facility ,000 50,000 - Purchase 15,000 lb Vehicle Lift - 15, Replace Fuel service building generator - 25, Upgrade Service Building A/C , Install Air Conditioning at Warehouse "C" - 50, Total - Facilities 80, , , , , ,128 Replace Drive-in Car Wash System ( Re budgeted for complete repair FY07) 25,000 50, Purchase Tie-Line Matenance Barge , Purchase Substation Washing Unit Trailer Mounted - 85, Replace (2) Fuel Garage - 100, Purchase EZ Hauler - 135, Purchase Skid Steer Loader - 30, Overhaul Company Vehicles ,000 60,000 60,000 60,000 Replace Vehicle #10 - Tree Trimmer (est. surplus $13,000) - 135, Replace Vehicle #100 - Digger Derrick (est. surplus $25,000+) - 180, Replace Vehicle #13 - Crane Knuckle Truck (flatbed) (est. surplus $0) - 110, Replace Vehicle #75 - Ford Ranger (est. surplus $1,500) - 20, Replace Vehicle #83-1/2 Ton Pickup (est. surplus $1,500) - 20, Replace Vehicle #82-1/2 Ton Pickup (est. surplus $1,500) - 20, Replace Vehicle #98-1/2 Ton Pickup (est. surplus $1,500) - 20, Replace Vehicle #61-1/2 Ton Pickup (est. surplus $1,500) - 20, Replace Vehicle #60-1/2 Ton Pickup (est. surplus $1,500) - 20, Replace Vehicle #26 - Utility Body (est. surplus $ 5,000) , Replace Vehicle #81-1/2 Ton Pickup(est. surplus $2,500) , Replace Vehicle #43-1/2 Ton Pickup (est. surplus $2,500) , Replace Vehicle #17-1/2 Ton Pickup (est. surplus $2,500) , Replace Vehicle #20-1/2 Ton Pickup (est. surplus $2,500) , Replace Vehicle #95-1/2 Ton Pickup (est. surplus $2,500) , Replace Vehicle #19-1/2 Ton Pickup (est. surplus $2,500) , Replace Vehicle #28-1/2 Ton Pickup (est. surplus $2,500) , Replace Vehicle #40-1/2 Ton Pickup (est. surplus $2,500) , Replace Vehicle #68-1/2 Ton Pickup (est. surplus $2,500) , Replace Vehicle #71-1/2 Ton Pickup (est. surplus $2,500) , Replace Vehicle #96-1/2 Ton Pickup (est. surplus $2,500) , Replace Vehicle #18 - Bucket Truck (est. surplus $15,000) , Replace Vehicle #15 - Cargo Trailer (est. surplus $500) , Replace Vehicle #32-3 spool Wire Trailer (est. surplus $500) , Replace Vehicle #33 - Dump Trailer (est. surplus $500) , Replace Vehicle #38 - Air Compressor (est. surplus $2,500) , Replace Vehicle #84 - Vermeer Chipper (est. surplus $7,500) , Replace Vehicle #103 - Cargo Trailer (est. surplus $500) , Replace Vehicle #21 - Vermeer Chipper (est. surplus $5,000) , Replace Vehicle #9 - Digger (est. surplus $25,000) ,000 - Replace Vehicle #34 - Step Van (est. surplus $1,500) ,000 - Replace Vehicle #55 - Step Van (est. surplus $1,500) ,000 - Replace Vehicle #54 - Utility Body (est. surplus $5,000) ,000 - Replace Vehicle #89 - Utility Body (est. surplus $5,000) ,000 - Replace Vehicle #117 - Dump Trailer (est. surplus $500) ,000 - Replace Vehicle #114 - Riding Mower (est. surplus $1,000) ,000 - Replace Vehicle #36 - Flat Bed Trailer (est. surplus $2,500) ,000 Replace Vehicle #66 - Boom Trailer (est. surplus $2,500) ,000 Replace Vehicle #74 - Arrow Board (est. surplus $500) ,000 Replace Vehicle #76 - Arrow Board (est. surplus $500) ,000 Replace Vehicle #77 - Pontoon Boat (est. surplus $5,00) ,000 Replace Vehicle #104 - Pontoon Trailer (est. surplus $1,000) ,
5 Multi Year Capital Improvement Plan Project Description FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 Replace Vehicle #92-1/2 Ton Pickup (est. surplus $2,500) ,000 Replace Vehicle #118 - Pole Trailer (est. surplus $2,500) ,000 Replace Vehicle #119 - Pole Trailer (est. surplus $2,500) ,000 Total - Fleets 25, , , , , ,000 GPS Vehicle Tracking 60, Integrated Voice Response [IVR] System 125,000 Replace AVL Tractors - 5,000 5,250 5,513 5,788 6,078 Upgrade PC's & Equipment Electrical Operation & Production 15,000 15,000 15,750 16,538 17,364 18,233 Upgrade PC's 75, , Homeland Security Cameras (6) , Inventory Barcode System - 25, ,000 Implement new Work In Process System , Customer Service and Financial System Upgrades ,000 - New Circuits for Substation RTU's - 50,000 15,000 15,000 60,000 15,000 Replace Intel Servers, Storage Devices, Fiber Channels 75, , Replace or Upgrade SCADA System 100, , Replace all Network Switching Equipment - 50, , ,000 Provide Wireless Functionality for Relays , Total - Information Technology 325, , , , , ,310 Emergency Contingency 40,000 50,000 50,000 50,000 50,000 50,000 Short & Long Term Land Use Plan -Cudjoe Key Phase I & II - - 2,369,000 4,876,000 2,507,000 - Short & Long Term Land Use Plan - Stock Island ,000 3,924,000 7,287,400 - Total - General Plant 40,000 50,000 2,619,000 8,850,000 9,844,400 50,000 Sub-Total All Proposed Projects 6,575,624 11,005,295 15,137,650 19,114,868 19,667,905 10,725,
6 Significant Capital Project Benefit The majority of Keys Energy Services (KEYS) capital projects are routine in nature, therefore, not discussed in this section. The three exceptions are described below. A new substation at Stock Island is budgeted in the five year plan for $2.2 million. The new substation is necessary to maintain reliability of service for the existing customer base and meet the increasing expected future demands of the community. Improve Distribution capital project is budgeted in the five year plan for $15.7 million. The project scope is to replace existing assets that are nearing the end of their useful life with upgraded materials capable of withstanding severe weather conditions. This capital improvement will enable KEYS to comply with the anticipated enactment of new guidelines by the Florida Public Service Commission for Storm Hardening of Distribution Systems in storm prone locations. Replacing Substation Transformers at Kennedy Drive Substation is budgeted in the five year plan for $2.5 million. The two existing transformers are at the end of their useful life. The replacement will ensure reliability of service, reducing the possibility of system failure. FY 07 Budgeted Capital Projects Distribution, $6,475,000 General Plant, $50,000 Facilities, $752,000 Generation, $1,375,000 Fleets, $945,000 Information Technology, $470,000 Transmission, $938,
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